We have an employee who has been working with us for about 5 years but we find no improvement in his performance despite repeated warnings. At long last, management is consider salary reduction or termination of his employment.
Please suggest some other ways which could help and work well for both the employee and management.

From India, Madras
For five long years you have endured your employee's under-performance. Strange to note that you could pull on with him for so many years.
You say that you have given him repeated warnings. But then were these verbal warnings or written ones? If these were written warnings, have you issued a hard copy to the employee and maintained its office copy? If yes, then based on the evidence, you may issue a show cause notice asking him to explain why administrative action should not be initiated against him for his under-performance. If the reply is not satisfactory, you may order a domestic enquiry. In the enquiry, give the employee a chance to defend his position. If the under-performance is proved then you may take disciplinary action against him which could be either demotion or termination.
If the employee is demoted then you may reduce his designation, you may reduce his salary also but while reducing salary, make sure that basic pay is maintained at the same level.
Dinesh Divekar

From India, Bangalore
Thank you very much for your quick reply.All the earlier warnings sent to him were verbal but the employee concerned has acknowledged those warning in written form admitting his performance issue.
Suggestion of making debit note for his mistakes was also proposed to Management instead of pay decrease, it was not accepted as the prime complaint against him is time wastage and need regular supervision in his work which is insubstantial.
Kindly advise.

From India, Madras

give one/three months notice with strict advice to improve performance, and depute a supervisor for weekly feedback, failure to compliance is loosing his job

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